Saudi Arabia Power Rental Market Research Report: Forecast (2022-27)

Power rental services deliver an uninterrupted energy supply to consumers and are ideal across remote areas with limited access to power. These services come in handy mainly when there is transmission disconnection, grid failure, & power outage, among others. Industries like mining, construction, manufacturing, etc., are the prominent consumers of power rental services across Saudi Arabia.

Market Insights

The Saudi Arabia Power Rental Market is projected to grow at around 12% CAGR during the forecast period, i.e., 2022-27. The growth of the market is likely to be driven by the rapidly increasing construction activities in Saudi Arabia, owing to the growing government focus on infrastructural developments for economic diversification, i.e., propelling the demand for interrupted power supply for various operations at sites. It, in turn, is soaring the need for power supply on a rental basis and driving the market across Saudi Arabia.

Additionally, escalating tourism and a growing number of hotels & resorts are also surging the demand for power rental services for several day-to-day operations. Besides, the increasing establishment of multinational companies is also stimulating the construction activities in the country and, in turn, fueling the demand for power rental services. 

Moreover, massive government support through various initiatives & strategic frameworks like Saudi Vision 2030 to transform the country's economy is another crucial aspect anticipated to generate lucrative growth opportunities for the leading players in the Saudi Arabia Power Rental Market during the forecast period. For instance:

• In April 2020, the Ministry of Industry & Mineral Resources of Saudi Arabia assigned several mining reserves across regions like Ha'il, Riyadh, Asir, Makkah, Najran, & Madinah to boost the entire energy industry under Vision 2030.

In addition, the presence of natural resources like oil & gas entwined with growing mining activities in the country are also expanding the potential for power rental services & boosting the overall market. Furthermore, the massive funding for the exploration & production of reservoirs is another vital factor displaying substantial potential for the leading market players through 2027.

Impact of Covid-19 on the Saudi Arabia Power Rental Market

The advent of Covid-19 in 2020 had a decelerating effect on most industries, where the Saudi Arabia Power Rental Market was no exception. With the imposition of stringent movement restrictions & lockdown by the government to curb the spread of this dreadful disease, the market underwent several unprecedented challenges.

Corporate sectors had to make a paradigm shift to work from home policies, and the manufacturing, mining, and other sectors temporarily halted their operations to reduce & eliminate the virus spread among workers. As a result, the demand for power rental services witnessed a decline and caused massive financial losses to the leading players in the market. However, on the other hand, the market witnessed a temporary hike through construction activities across the country, which sought the demand for power rental services.

Nonetheless, with the declining number of Covid-19 cases, the government uplifted the restrictions & allowed the recommencement of business operations. With this, the leading players in the market resumed offering services across end-user industries. Currently, the market is expanding well and on its path to recover from financial losses caused amidst the pandemic.

Market Segmentation

Based on the Application:

• Power Utilities
• Oil & Gas
• Construction
• Mining

Amongst all, the Construction application dominated the Saudi Arabia Power Rental Market in recent years, and the same trend is likely during the forecast period. It attributes principally to the growing government focus on infrastructure developments, i.e., projecting an extensive construction of airports, highways, roads, hotels, shopping complexes, residential buildings, etc., and, in turn, propelling the demand for power rental services for uninterrupted energy supply required in construction operations.

Besides, the escalating construction of new buildings across the commercial & residential sectors are also anticipated to display the maximum consumption of power rental services & augment the overall market growth through 2027. Moreover, the rapidly expanding tourism is another prominent aspect positively influencing the demand for power rental services to suffice the energy requirements of the hospitality sector. For instance:

• In 2019, Hilton and Shomoul Holding Co. were awarded a contract to construct new hotels, conference halls, exhibition spaces, residential apartments, medical facilities, and offices in Riyadh. The project is anticipated to complete by 2023 and augment the demand for power rental services, which, in turn, would drive the Saudi Arabia Power Rental Market.

Based on the Type:

• Diesel Generators
• Gas Generators

Here, Diesel Generators acquired the largest market share in recent years. It owes principally to the rapidly growing demand for power rental services across the off-grid & remote areas in the country entwined with the growing ease of access to fuel. Besides, easy portability for power rental through diesel generators is also playing a crucial role in boosting the demand for these services and augmenting the overall market growth.

Moreover, the mounting inclination of the Saudi government on diversifying the economy away from oil & gas under their strategic Vision 2030 is another crucial aspect displaying an increasing number of construction projects across the country. It, in turn, is boosting the demand for diesel generators on a rental basis to deliver an uninterrupted power flow.

Key Questions Answered in the Market Research Report:

1. What are the key overall statistics or estimates (Overview, Size- By Value, Forecast Numbers, Segmentation, Shares) of the Saudi Arabia Power Rental Market?
2. What are the region-wise industry size, growth drivers, and challenges?
3. What are the key innovations, opportunities, current & future trends, and regulations in the Saudi Arabia Power Rental Market? 
4. Who are the key competitors or market players, their strengths & weaknesses, and how do they perform in the Saudi Arabia Power Rental Market based on the competitive benchmarking matrix?
5. What are the key results derived from surveys conducted during the Saudi Arabia Power Rental Market study?

Frequently Asked Questions